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Doctors' insurance dispute could escalate

AM Archive - Friday, 14 June , 2002 00:00:00

Reporter: Michael Condon

LINDA MOTTRAM: The dispute over insurance that saw health services grind to a halt in many hospitals and specialists walk off the job is threatening to escalate again.

Australia's doctors are still not happy with the latest development in the Federal Government's efforts to underwrite medical indemnity. The Australian Medical Association says the Federal Government has only guaranteed claims until December 2002 and beyond that there is still an unfunded black hole.

Michael Condon reports.

MICHAEL CONDON: Just when you thought it was safe to go back to the hospital, the dispute over medical indemnity insurance is starting to reignite.

The AMA says Federal and State governments must move more quickly to institute massive reforms to limit claims. President Kerryn Phelps says we're running out of time.

KERRYN PHELPS: Well the Government's guarantee until the 31st of December is a short term measure. It's buying respite until we can get in place long term reforms both at State and Commonwealth level in order to fix the problem in the long term.

Doctors are not prepared to just throw money into a black hole without having these other reforms in place at State and Commonwealth level because it would be just like throwing money into a black hole.

MICHAEL CONDON: But isn't that the case with all insurance claims anyway that it could be potentially a black hole?

KERRYN PHELPS: Well I think when you're getting down to the point that you can't get doctors to deliver your baby or you can't get doctors to do brain surgery, then I think that we're really looking at life and death situations and if we get into that situation where health services are threatened, then I think it adds an extra dimension to the insurance problem and certainly adds a sense of urgency to it.

MICHAEL CONDON: So are doctors saying that they donít want to pay any more?

KERRYN PHELPS: Well doctors are saying that they are at a point where they cannot in many cases pay more, in some cases they can't pass it on to their patients and the money has to come from somewhere and this is where, I think, that we've got a lot of negotiating to do around the proposed levy.

Because unless we have the reforms in place, then there is no end to the possible amount that doctors and patients might be expected to pay and it will be effecting the ability of doctors to provide services to their patients and doctors are making decisions to either retire or work overseas or do something else other than the type of work that they have been trained for.

What we are saying is that the State governments have to do their bit and the Commonwealth must also continue to put in place the reforms that have been promised, which are the long term care and rehabilitation scheme for severely injured people, so that we can take those long term care costs out of the common law equation and also to make sure that that structure's settlements legislation is in place.